Financial Adviser (FA): Licence Application

What are the financial requirements for a financial advisor (FA) licence applicant or holder?

According to MAS (Pages),

last revised on 31 March 2020

... MAS expects all FA licence applicants to meet the enhanced requirements (listed below).

(i) Base capital requirement

If your company only advises others by issuing or promulgating research analyses or research reports concerning investment products, you are required to maintain a minimum base capital of S$250,000. For all other types of financial advisory activities, you are required to maintain a minimum base capital of S$500,000, or a lower base capital of S$300,000 plus an additional professional indemnity insurance of S$500,000.

(ii) Financial resources requirement

You are required to maintain financial resources that are the higher of:

a) ¼ of your relevant annual expenditure of the preceding financial year; or

b) S$150,000.

You can find more details on the financial requirements in Part II, Questions 7, 7A and 8 of the FAQs on Financial Advisers Act, Financial Advisers Regulations, Notices and Guidelines.